Nokia Networks to acquire Panasonic mobile network arm
31 July 2014 |
Finnish vendor Nokia Networks is set to acquire the mobile network business of Japanese technology and solution provider Panasonic System Networks.
The two companies have entered into a memorandum of understanding (MoU) which will see Nokia acquire Panasonic’s 3G and 4G mobile base station unit.
“Japan is a key market for us and this agreement is a major milestone in forging closer ties in Japan,” said Ashish Chowdhary, EVP of AMEA at Nokia Networks. “The acquisition [will] further strengthen our mobile broadband portfolio and add significant value for Japanese operators.”
Panasonic will transfer its fixed assets and business contracts to Nokia Networks in Japan, as well as those Panasonic employees involved in the business.
Nokia hopes the acquisition will improve its efficiency and quality control for product development and R&D. The company also plans to use its global expertise in mobile broadband to grow the unit in the domestic carrier market worldwide.
The agreement is set to conclude by the end of September 2014, and reach final closure by January 1, 2015, subject to a number of conditions and regulatory approval.